Animation of Energy Prosperity Spreading Across Pennsylvania As Horizontal Drilling Takes Off

Just out this afternoon from the EIA: "Between 2009 and 2011, Pennsylvania's natural gas production more than quadrupled due to expanded horizontal drilling combined with hydraulic fracturing (see chart below). This drilling activity, which is concentrated in shale formations that cover a broad swath of the state, mirrors trends seen in the Barnett shale formation in Texas. The animation above illustrates Pennsylvania's relatively recent transition from conventional vertical wells (black diamonds) to horizontal wells (red diamonds), drilled mostly in sections of the Marcellus, Utica, and Geneseo/Burket shale formations located in the northeast and southwest portions of the state. The animation also shows that as horizontal drilling increased, the number of vertical wells—which are typically less productive—fell, resulting in an overall decline in the state's new well count. Historically, natural gas exploration and development activity in Pennsylvania was relatively steady, with operators drilling a few thousand conventional (vertical) wells annually. Prior to 2009, these wells produced about 400 to 500 million cubic feet per day of natural gas. With the shift to and increase in horizontal wells, however, Pennsylvania's natural gas production more than quadrupled since 2009, averaging nearly 3.5 billion cubic feet per day in 2011 (see chart above)."

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Skeptics are too quick to dismiss the potential expansion of horizontal drilling and hydraulic fracturing to other shale areas in the United States and around the world.
Based on early setbacks and the slow rate of progress outside Bakken and Eagle Ford, they doubt whether the revolution can be replicated. But shale entrepreneurs are investing heavily to prove them wrong.
So far, the North American shale revolution has been confined to two states, Texas and North Dakota, at least as far as oil is concerned.

By Zacks Investment Research:
If you are looking for a small and inexpensive domestic energy play as crude oil prices hold their own above $100 per barrel, it's time to consider a $1.4 billion fracking company that has been shifting its focus from natural gas to crude liquids. And the shift has been showing up in the profits, as you will see.

Since 2009, natural gas production out of the Pennsylvania-centered Marcellus shale play has soared 650%. Today, daily new-well gas output from the region totals 7.5 million cubic feet — making it the largest or second-largest unconventional gas play in the world, depending on who's counting. A new report argues the Marcellus only just begun to boom.

“These are amazing numbers,” says Lynn Helms. “These are major, major milestones.”
No, Mr. Helms is not talking about the national debt, and thank goodness for that. As director of North Dakota’s Department of Natural Resources, he’s talking about his state’s oil and gas production.

By Igor Alexeev. Cross-posted from Oil Price
Just like the famous Gold Rushes of the 19th century, US shale gas development is turning out to be a limited and regional market opportunity. Across the Atlantic, the high financial and human costs to fracking also mean that Europe should forget any fantasies about repeating the US shale boom.